Do you already have a succession plan in place for your small business? If not, your company could be exposed to risks and financial losses if you were to develop a disability or pass away suddenly. There’s never been a better time than now to re-evaluate your plans.
According to research, historically low interest rates over the last couple of years have been a major catalyst for economic growth, but they also created a lot of demand for private equity firms that are looking to invest in a broad range of small businesses.
This means that this a once in a generation opportunity may be presented to many small and medium sized businesses across the country, which could increase their value or even lead to many more millionaires across the country.
During the third quarter of 2017, BizBuySell Insights report showed that a record number of small businesses were sold. More than 2500 transactions were reported across the country, nearly a 24% increase from the time period the year before. Private equity funds raised more than $340 billion in 2016, and the window to take advantage of the financial support of these deals may be drawn to a close if interest rates are raised throughout 2018.
Proper business succession planning needs to be put in place well in advance of making any major changes in your company. Consulting with a knowledgeable business succession planning attorney and asset protection planning attorney in California can assist you with these processes.
